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First Quarterly ReportJuly-September 2012First Quarterly ReportJuly-September 2012
ENVIRONMENTAL
ISO 9001 & ISO 14001APPROVED
Rawalpindi — Pakistan
Fauji Tower Block-III, 68 Tipu Road
If Undelivered please return to:
Company Secretary
Fauji Cement Company Limited
AUJICEMENT
1st Quarterly Report 2012
F C C L
Company Information
Directors' Review
Condensed Interim Balance Sheet(Un-Audited)
Condensed Interim Profit and Loss Account(Un-Audited)
Condensed Interim Statement of Comprehensive Income(Un-Audited)
Condensed Interim Cash Flow Statement(Un-Audited)
Condensed Interim Statement of Changes in Equity(Un-Audited)
Notes to the Condensed Interim Financial Information(Un-Audited)
2
3
4
6
7
8
9
10
1Contents
F C C L2
Lt Gen (R) Muhammad Sabir,HI (M), (CE/MD) Mr. Qaiser Javed
Brig Dr. Gulfam Al(R) am, SI (M)
Dr. Nadeem InayatBrig Agha Ali Hassan, SI(M) (R)
Brig Parvez Sarwar Khan, SI (M) (R)
Brig (R) Muhammad Saeed Khan Mr. Max Kruse, IFU
Board of Directors
Brig Sajjad Azam Khan, SI (M) T Bt (R)
Fauji Tower Block III
68 Tipu Road, Chaklala, Rawalpindi
Tel: (051) 9280075
Fax: (051) 9280416
E - mail: sajjad@fccl.com.pk
Company Secretary
Fauji Towers, Block -III, 68 Tipu Road ChaklalaRawalpindi
Tel: (051) 9280075,
Exch: 051-9280081-83, 5763321-24
Fax: (051) - 9280416
Registered Office
Fax No: (051) 2260653
M/s Orr Dignam & Co, Advocates
Legal Advisors
Auditors M/s KPMG Taseer Hadi & Co,
Chartered Accountants
Fax No: (051) 2822671
Mr. Omer Ashraf
Tel: (051) 5500157
Chief Financial Officer
Factory Near Village Jhang Bahtar, Tehsil Fateh Jang
District: Attock
Tel: 057-2538047-48, 2538138, 2538148-49
Fax: 057-2538025
Company Website http://www.fccl.com.pk
Company Information
Lt Gen (R) Muhammad Mustafa Khan, HI (M) , (Chairman)
1st Quarterly Report 2012
F C C L3
Directors' Review
1. The Board of Directors is pleased to present their review report along with the un-audited
accounts of the Company for the Quarter ended 30 September 2012.
2. During the first quarter the Company earned a net profit of Rs. 361 Million as compared to
Rs. 104 Million in the same period of last year. The Company achieved capacity utilization
of 66% as compared to 50% (based on 11,445 TPD) in the corresponding period of last year.
Local dispatches stood at 424,719 tons as compared to 288,759 tons during the
corresponding quarter of last year. Export dispatches stood at 141,960 tons as compared to
138,196 tons in the same quarter of last year. The Company is making considerable efforts to
further enhance its sales.
3. The cost of sales per ton during the period under review was higher than the corresponding
period of last year mainly due to increase in electricity and diesel prices. The average
retention prices during the period have also increased due to enhanced demand in the
market, which has somewhat mitigated the impact of cost increase.
4. Looking forward, next quarter could be slow in terms of dispatches due to the start of winter
season. The domestic prices are looking stable but with low exports, domestic dispatches
will remain under pressure. However, reduction in KIBOR in line with the SBP discount rate
will provide some relief in financial charges. The major challenge however remains stable
electricity supply and prices of fuel and electricity.
For and on behalf of the Board
Lt Gen Muhammad Mustafa Khan, HI (M) Chairman
(R) Rawalpindi30 October 2012
1st Quarterly Report 2012
F C C L4
Condensed Interim Balance Sheet as at 30 September 2012
Chief Executive
1st Quarterly Report 2012
30 September 2012 30 June 2012 Un- audited Audited Note
Rupees'000 Rupees'000
SHARE CAPITAL AND RESERVES
Share capital 4
13,798,150
13,798,150
Reserves
507,115
106,955
14,305,265
13,905,105
NON - CURRENT LIABILITIES
Long term financing - secured 5
6
9,747,703
10,174,513
Deferred liability - compensated absences
24,851
Deferred tax liability - net
1,234,956
25,203
1,104,823
CURRENT LIABILITIES
Trade and other payables 1,528,019
1,778,447
Markup accrued 174,728
349,377
Short term borrowings - secured 1,232,925
985,954
Current portion of long term financing 2,499,971
2,380,395
5,435,643
5,494,173
30,748,770
30,703,465
CONTINGENCIES AND COMMITMENTS
The annexed notes from 1 to 11 form an integral part of this condensed interim financial information.
F C C L5
Director
Condensed Interim Balance Sheet as at 30 September 20121st Quarterly Report 2012
30 September 2012 30 June 2012 Un-audited Audited Note
Rupees'000 Rupees'000
NON - CURRENT ASSETS Property, plant and equipment 7
25,605,760
25,897,954
Long term advance
3,600
3,600
Long term deposits and prepayments
613,803
642,093
CURRENT ASSETS
Stores, spares and loose tools
2,554,433
Stock in trade
955,337
Trade debts
64,241
Advances
13,077
Trade deposits, short term prepayments and
balances with statutory authority
192,024
Interest accrued
393
Other receivables
165,242
Cash and bank balances
2,958,318
939,698
165,650
22,707
198,703
284
45,613
194,634
215,071
4,525,607
4,159,818
30,748,770
30,703,465
F C C L6
DirectorChief Executive
Condensed Interim Profit And Loss Account (Un-Audited)For the First Quarter Ended 30 September 2012 1st Quarterly Report 2012
Quarter Ended
30 September 2012
30 September 2011
Note Rupees'000 Rupees'000
SALES 4,073,099 1,956,742
Government levies (609,006) (354,833)
NET SALES 3,464,093 1,601,909
Cost of sales 8 (2,451,227) (1,364,515)
GROSS PROFIT 1,012,866 237,394
Other income 14,438 8,392
Distribution cost (38,597) (13,237)
Administrative expenses (38,549) (28,491)
Other operating expenses (38,737) (9,310)
Finance cost (385,700) (68,405)
NET PROFIT BEFORE TAXATION
525,721
126,343
Taxation
- Current (34,641) (22,525)
- Deferred (130,133) -
(164,774) (22,525)
NET PROFIT AFTER TAXATION 360,947 103,818
Earnings per share - Basic (Rupees) 0.27 0.08
Earnings per share - Diluted (Rupees) 0.26 0.07
The annexed notes from 1 to 11 form an integral part of this condensed interim financial information.
F C C L7
DirectorChief Executive
Condensed Interim Statement of Comprehensive Income(Un - Audited) For the First Quarter Ended 30 September 2012 1st Quarterly Report 2012
Quarter Ended
30 September 2012 30 September 2011 Rupees'000 Rupees'000
Net profit after tax 360,947 103,818
Other comprehensive income - -
Total comprehensive income 360,947 103,818
The annexed notes from 1 to 11 form an integral part of this condensed interim financial information.
F C C L8
DirectorChief Executive
Condensed Interim Cash Flow Statement (Un - Audited)For the First Quarter Ended 30 September2012
1st Quarterly Report 2012
Quarter Ended
30 September 2012 30 September 2011
Rupees'000
Rupees'000
Cash flows from operating activities
Net profit before taxation
525,721
126,343
Adjustments for:
Depreciation
318,814
118,658
Provision for compensated absences
5,641
7,882
Workers' (Profit) Participation Fund including interest and WWF
39,034
9,568
Finance cost (excluding interest on WPPF)
385,403
68,147
Gain on disposal of property, plant and equipment
(2,079)
(1,555)
Interest income including interest on long term deposit
(6,358)
(4,449)
740,455 198,251
Operating cash flows before working capital changes
1,266,176
324,594
Increase in stores and stocks
(388,246)
(653,241)
Increase in trade debts
(101,409)
(3,048)
(Increase)/ decrease in advances
(9,630)
21,624
(Increase)/ decrease in trade deposits, short term prepayments and
balance with statutory authority
(20,383)
11,876
Decrease/ (increase) in other receivables
119,629
(1,473)
(Decrease)/ increase in trade and other payables
(66,571)
147,140
(466,610)
(477,122)
Cash generated from/ (used in) operations
799,566
(152,528)
Compensated absences paid
(437)
(898)
Payment to Workers' (Profit) Participation Fund
(52,169)
(26,463)
Taxes paid
(20,935)
(35,209)
Net cash generated from/ (used in) operating activities
726,025
(215,098)
Cash flows from investing activities
Additions in property, plant and equipment
(26,620)
(52,426)
Proceeds from disposal of property, plant and equipment
2,079
1,586
Interest received on bank deposits
6,467
2,822
Net cash used in investing activities
(18,074)
(48,018)
Cash flows from financing activities
Repayment of subordinated loan
-
(3,189,000)
Repayment of long term financing
(374,764)
-
Amount received against issue of right shares -
net
-
2,324,986
Dividend paid on preference shares
(175,573)
(66,885)
Repayment of short term borrowings
(940,000)
(18,739)
Finance cost paid
(425,022)
(525,797)
Net cash used in financing activities
(1,915,359)
(1,475,435)
Decrease in cash and cash equivalents (1,207,408) (1,738,551)
Cash and cash equivalents at beginning of the period 169,117 483,888
Cash and cash equivalents at end of the period (1,038,291) (1,254,663)
Cash and cash equivalents comprise of the following:
Cash and bank balances 194,634 123,535
Running finance (1,232,925) (1,378,198)
(1,038,291) (1,254,663)
The annexed notes from 1 to 11 form an integral part of this condensed interim financial information.
Sha
re c
apita
l
Adv
ance
aga
inst
is
sue
of s
hare
s
Cap
ital r
eser
ve
Rev
enue
res
erve
Ord
inar
y
Pre
fere
nce
Dis
coun
t on
issu
eof
sha
res
Hed
ging
Acc
umul
ated
Tota
l
rese
rve
prof
it
Rup
ees'
000
Rup
ees'
000
Rup
ees'
000
Rup
ees'
000
Rup
ees'
000
Rup
ees'
000
Rup
ees'
000
Bal
ance
as
at 3
0 Ju
ne 2
011
6,93
2,89
5
486,
992
861,
871
1,82
6,45
2
(606
,629
)
1,51
2,43
6
11,0
14,0
17
Tota
l com
preh
ensi
ve in
com
e
Pro
fit fo
r the
per
iod
-
-
-
-
-
103,
818
103,
818
Oth
er c
ompr
ehen
sive
inco
me
-
-
-
-
-
-
-
Tota
l com
preh
ensi
ve in
com
e
-
-
-
-
-
103,
818
103,
818
Tran
sfer
dur
ing
the
perio
d
-
-
-
-
46,1
59
-
46,1
59
Tran
sact
ion
with
the
owne
rs
Am
ount
rece
ived
aga
inst
issu
e of
righ
t sha
res
-
-
2,32
7,26
1
-
-
-
2,32
7,26
1
Issu
ance
of r
ight
sha
res
at d
isco
unt
6,37
8,26
3
-
(3,1
89,1
32)
(3,1
89,1
31)
-
-
-
Cos
t inc
urre
d in
con
nect
ion
with
issu
e of
righ
t sha
res
-
-
-
(2,2
75)
-
-
(2,2
75)
Tota
l tra
nsac
tion
with
the
owne
rs
6,37
8,26
3
-
(861
,871
)
(3,1
91,4
06)
-
-
2,32
4,98
6
Bal
ance
as
at 3
0 S
epte
mbe
r 20
11
13,3
11,1
58
486,
992
-
(1,3
64,9
54)
(560
,470
)
1,61
6,25
4
13,4
88,9
80
Bal
ance
as
at 3
0 Ju
ne 2
012
13,3
11,1
58
486,
992
-
(1,3
64,3
85)
(418
,113
)
1,88
9,45
3
13,9
05,1
05
Tota
l com
preh
ensi
ve in
com
e
Pro
fit fo
r the
per
iod
-
-
-
-
-
360,
947
360,
947
Oth
er c
ompr
ehen
sive
inco
me
-
-
-
-
-
-
-
Tota
l com
preh
ensi
ve in
com
e
-
-
-
-
360,
947
360,
947
Tran
sfer
dur
ing
the
perio
d
-
-
-
-
39,2
13
-
39,2
13
Tota
l tra
nsac
tion
with
the
owne
rs
-
-
-
-
-
-
-
Bal
ance
as
at 3
0 S
epte
mbe
r 20
12
13,3
11,1
58
486,
992
-
(1,3
64,3
85)
(378
,900
)
2,25
0,40
0
14,3
05,2
65
The
anne
xed
note
s fro
m 1
to 1
1 fo
rm a
n in
tegr
al p
art o
f thi
s co
nden
sed
inte
rim fi
nanc
ial i
nfor
mat
ion.
F C C L9
Dir
ecto
rC
hie
f Ex
ecu
tive
Condensed Interim Statement of Changes in Equity (Un - Audited) For the First Quarter Ended 30 September 2012 1st Quarterly Report 2012
F C C L10
Notes to the Condensed Interim Financial Information (Un-Audited)For the First Quarter Ended 30 September 2012 1st Quarterly Report 2012
5. LONG TERM FINANCING-SECURED AuditedUn-Audited Note
5.1
30 September 2012 30 June 2012 Rupees'000
Rupees'000
Rupees'000
Rupees'000
AuditedUn-Audited 30 September 2012 30 June 2012
From banking companies
Term finance facilities including syndicated term finance facilities - secured
12,554,908
Less: Current portion shown under current liabilities (2,380,395)
9,747,703 10,174,513
5.1 12,554,908
(374,764)
67,530
(2,449,971)
12,247,674
13,553,622
(1,671,082)
672,368
Movement in this account during the period/ year is as follows: Opening balance
Principal repayment during the period/ year
Exchange loss on revaluation and transaction cost adjustment
Closing balance 12,247,674 12,554,908
6. CONTINGENCIES AND COMMITMENTS
1 Fauji Cement Company Limited ("the Company") is a public limited company incorporated in Pakistan on 23 November
1992 under the Companies Ordinance, 1984 and commenced its business with effect from 22 May 1993. The shares of the Company are quoted on Karachi, Islamabad and Lahore stock exchanges in Pakistan. The principal activity of the Company is manufacturing and sale of ordinary portland cement. The Company's registered office is situated at Fauji Towers, Block III, 68 Tipu Road, Rawalpindi. Fauji Foundation holds 57.09 % ordinary and 100% preference shares in the Company.
2 This condensed interim financial information of the Company for the quarter ended 30 September 2012 has been prepared in accordance with the requirements of International Accounting Standard 34 - "Interim Financial Reporting" and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed. The disclosures in the condensed interim financial information do not include the information reported for full annual financial statements and should therefore be read in conjunction with the financial statements for the year ended 30 June 2012. Comparative balance sheet is extracted from annual financial statements as of 30 June 2012 whereas comparative profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity are extracted from unaudited condensed interim financial information for the quarter ended 30 September 2011.
This condensed interim financial information is unaudited and is being submitted to the members as required under Section 245 of the Companies Ordinance, 1984 and the listing regulations of the Karachi Stock Exchange Limited.
3. The accounting policies and the methods of computation adopted in preparation of this condensed interim financial information are the same as those applied in preparation of financial statements for the year ended 30 June 2012.
4. SHARE CAPITAL
There is no change in composition of issued, subscribed and paid up share capital of the Company from 30 June 2012.
6.1 ContingenciesThere is no change in the contingent liabilities as reported in the financial statements for the year ended 30 June 2012.
6.2 CommitmentsThe company has opened Letters of Credit for the import of spare parts valuing Rs. 56 million ( 30 June 2012: Rs. 51 million).
7. PROPERTY, PLANT AND EQUIPMENT
Opening book value 25,897,954 26,658,079 Additions during the period/ year 26,620 310,288 Written down value of disposals - (330) Depreciation for the period (318,814) (1,070,083)
Closing carrying amount 25,605,760 25,897,954
F C C L11
Notes to the Condensed Interim Financial Information (Un-Audited)For the First Quarter Ended 30 September 2012 1st Quarterly Report 2012
Quarter Ended
Un-audited Un-audited
30 September 2012
30 September 2011
8. COST OF SALES Rupees'000 Rupees'000
Raw material consumed 162,021 79,556
Packing material consumed 179,332 111,337
Stores and spares consumed 7,883 4,597
Salaries, wages and benefits 138,149 80,218
Rent, rates and taxes 3,736 1,635
Insurance 22,417 8,001
Fuel consumed 897,645 578,421
Power consumed 550,696 320,537
Depreciation 315,817 115,429
Repairs and maintenance 107,065 43,013
Technical assistance 677 -
Printing and stationery 238 197
Traveling and conveyance 4,011 1,614
Vehicle running and maintenance expenses 5,388 3,728
Communication, establishment and other expenses 1,224 2,485
2,396,299 1,350,768
Add: Opening work-in-process 677,001 210,041
Work in process transferred after trial run of line - - 260,372
Less: Closing work-in-process (641,609) (475,451)
Cost of goods manufactured 2,431,691 1,345,730
Add: Opening finished goods 146,138 80,289
Finished goods transferred after trial run of line-II
II
- 135,052
Less: Closing finished goods (126,602) (194,035)
2,451,227 1,367,036
Less: Own consumption capitalized - (2,521)
2,451,227 1,364,515
9. RELATED PARTY TRANSACTIONS
Fauji Foundation holds 57.09 % ordinary shares and 100% preference shares of the Company, therefore all subsidiaries and associated undertakings of Fauji Foundation are related parties of the Company. Other related parties comprise of directors, key management personnel, entities over which the directors are able to exercise significant influence and employees' fund. Transaction and balances with related parties are as follows:
F C C L12
Notes to the Condensed Interim Financial Information (Un-Audited)For the First Quarter Ended 30 September 2012 1st Quarterly Report 2012
DirectorChief Executive
Quarter Ended
30 September 2012
30 September 2011
Rupees'000 Rupees'000
Fauji Foundation -Sale of Cement 5,455 432 -Payment on account of clearance of shipments - 750 -Payment for use of medical facilities 69 - -Preference dividend paid 175,573 66,885 -Payment of rent and utilities 1,925 - -Amount received against underwriting of shares - 2,327,260 -Repayment of subordinated loan - 3,189,000 -Repayment of amount payable 300,000 - -Amount payable 115 - *
Payments made into Employees' Provident Fund 5,650 4,450 Payments made to Workers' (Profit) Participation Fund 52,169 26,206 Remuneration including benefits and perquisites to Chief Executive 2,870 2,468 Remuneration including benefits and perquisites to key management personnel 7,733 6,195 * Comparative figure relate to 30 June 2012 balance
10. Date of authorization for issue
This condensed interim financial information was authorized for issue by the Board of Directors of the Company in
meeting held on 30 October 2012 their
.
11. General
Figures have been rounded off to the nearest thousand of Rupees unless otherwise stated.
First Quarterly ReportJuly-September 2012First Quarterly ReportJuly-September 2012
ENVIRONMENTAL
ISO 9001 & ISO 14001APPROVED
Rawalpindi — Pakistan
Fauji Tower Block-III, 68 Tipu Road
If Undelivered please return to:
Company Secretary
Fauji Cement Company Limited
AUJICEMENT